"However, the perspective has changed for business globally and those new rules require tough decisions for the greater good.

"This is one of those decisions.

"With the realities of the financial crisis and the downturn in consumer confidence, companies worldwide have an overriding responsibility to do their utmost to conserve cash - and Toyota is doing just that," Mr Buttner said.

Mr Buttner said all TRD owners would be covered by Toyota's new-vehicle warranty and the company would guarantee the continuing supply of parts to meet its legal obligations.

Every TRD component is a registered Toyota part.

All seventeen Toyota employees involved in the TRD operation will be redeployed within Toyota.

Mr Buttner said TRD had been a valuable project in developing and proving expertise within Toyota Australia.

"The decision to move TRD's focus from vehicle conversion was made with the best interest of its customers and its network in mind.

"In the current circumstances the decision is correct and the outcome will be positive."

Toyota Australia will lead the overall Australian automotive market for the sixth successive year in 2008.

Annual sales figures to be released in January are expected to reveal customer demand for Toyota and trust in its core product range are at record levels.